Indian Economic Sectors and Growth

Statement 1 is correct: The production of food grains has increased from 54.92 million tones to 234.52 million tones in 2010-11.
Statement 2 is incorrect: An agricultural year in India is from July to June, while a calendar year is from January to December.

In order to improve health of the small scale industries (SSIs), the Government of India appointed Abid Hussain Committee in 1991. The Committee submitted its report, which carried some revolutionary recommendations, in 1997.
Though the S. P. Gupta Committee was also constituted for the cause of the SSIs, its year of appointment was 1999.

(1) New Industrial Policy - 1991
(2) Voluntary Retirement Scheme - 1988
(3) National Renewal Fund - 1992

The 1997-98 budget referred to nine well performing public sector enterprises - Navratnas, which were provided full financial and managerial autonomy to become global giants.

Foreign direct investment (FDI) is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
Foreign direct investment has many forms. Broadly, foreign direct investment includes mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra-company loans.
FDI usually involves participation in management, joint-venture, transfer of technology and expertise.

Both the statements are true, but reason does not click the logic behind the assertion. The correct reason is poor productivity of labour.
A student must acknowledge the fact that though the use of fertilizers, etc., has led to an increase in productivity of Indian land yet the productivity of land is much poor than that of China, USA, etc. due to their use of better land management practices.

Productivity in agriculture is mainly dependent upon two sets of factors – Technological and Institutional.
Among the technological factors are the use of agriculture inputs and methods like improved seeds, fertilisers and better farming practices.
The institutional reforms include redistribution of land ownership, providing security of tenure, regulation of rents, etc.

An industry that has been in existence for not less than 5 years, and is found at the end of an accounting year to have accumulated losses to such an extent that its net worth is completely eroded.

Agriculture is an important sector of Indian economy. It is source of supply of basic wage goods, i.e. food items to industry as well as people on the whole. It provides raw materials to various agro-based industries. It is also a great source of foreign exchange for the economy, especially for a developing country like India, where a large share of its population depends, directly or indirectly, upon agriculture.

Statement 1 is correct: In order to bring more crops under insurance cover, Rashtriya Krishi Bima Yojna was launched from the rabi season in 1999-2000.
Statement 2 is correct: Rashtriya Krishi Bima Yojna envisages insurance coverage of all the food crops, oil seeds and annual horticultural/commercial crops, in respect of which past yield data is available for adequate number of years.

Agricultural loan duration

1. Short term less than 15 months
2. Medium term 15 months to 5 years
3. Long term more than 5 years (No upper limit applicable)

<span style="font-family:" arial;="" font-size:="" small;="">Statement 1 is correct: The Second Five Year Plan, which was based on Mahalanobis model of development, gave high priority to industrialisation.
Statement 2 is incorrect: Three new steel plants in the public sector were commissioned at Rourkela, Dugapur and Bhilai during the second five year plan.
Bokaro steel plant was commissioned during the Third Five Year Plan.

Both the statements given are perfectly correct.
Kisan Credit Card Scheme was introduced in 1998-99 to facilitate access to credit from Commercial Banks, Cooperatives and Regional Rural Banks.
Rural Infrastructure Development Fund (RIDF) was set up with a corpus of Rs.10,000 crore with NABARD to finance rural infrastructure development projects by states.

A sunrise industry is a new industry that is expanding rapidly (e.g. the telecom industry in the mid-1990s) and is expected to be increasingly important in the future.
The term was coined in 1983 to describe the then new, successful manufacturing industries, upon which the economic sun was supposedly rising. This is also used as an antonym for an earlier term 'sunset industry'.

List of Maharatna CPSEs:

1. Bharat Heavy Electricals Limited
2. Coal India Limited
3. GAIL (India) Limited
4. Indian Oil Corporation Limited
5. NTPC Limited
6. Oil and Natural Gas Corporation Limited
7. Steel Authority of India Limited